Construction
Construction industry is a significant driver of economic growth, contributing substantially to Gross Domestic Product (GDP) and employment. It encompasses both real estate and infrastructure construction, with opportunities across various sectors like railways, energy, and urban development.
Construction industry involves many players like contractors, principals, engineers, architects, interior designers, etc.and these players face many risks in their day to day operations in their respective fields. These risks include loss or damage to works, design defect, environmental exposure, labour accidents, labour shortages, project delays, etc. Some of these risks can be managed through proper planning and some needs to be mitigated through risk transfer to insurance companies.
Here's a guide to what Insurance, the Construction Industry players need to take to mitigate the risks to a great extent !!
1. Contractors All Risk Insurance - To safeguard contractors and principals from the potential financial loss arising out of physical loss or damage to civil engineering project works from the risks of fire, flood, storm, earthquake, collapse, Lightning, etc.
2. Erections All Risk Insurance - To safeguard contractors and principals from the potential financial loss arising out of physical loss or damage to electro-mechanical project works from the risks of fire, flood, storm, earthquake, collapse, Lightning, etc..
3. Contractors Plant & Machinery Insurance - To safeguard contractors and principals from the potentialfinancial loss arising out of physical loss or damage to project machinery and equipments from the risks of fire, flood, storm, earthquake, collapse, Lightning, etc.
4. Workers/ Employees Compensation Insurance - To cover the legal financial liability of the employer towards its employees arising out of accidents at the project sites causing injuries to the workers (as per applicable laws of land).
5. Public Liability Insurance - To cover the legal financial liability of the contractors and principals towards third-parties arising out of accidents at the project sites resulting in injuries or property damage (as per applicable laws of land).
6. Delay in Start-Up/ Advance Loss of Profits (DSU/ALOP) Insurance - To safeguard the principals, owners, financiers and lenders from the financial impact of delay in start of operations of the project due to any physical loss or damage during construction phase.
7. Marine Insurance - To safeguard contractors and principals from the potential Financial loss arising out of physical loss or damage to project cargo and materials arising out of maritime or transit adventures.
8. Professional Indemnity Insurance - To cover the legal financial liability of the contractor, design engineer, architects or any other concerned person towards the client or third parties arising out of negligence, errors or omissions in provision of professional services (as per applicable laws of land).